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    Egypts EconomicPROFILE AND StAtIStIcS

    2011

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    Overview

    As the Egyptian economy had started to show signs of recovery from the economic slowdown

    that was spurred by the global crisis, the revolution broke out on January 25, 2011 resulting in a

    temporary disruption of economic activity and rampant uncertainty. Growth1 is projected to averge

    1.8 percent in 2010/11 compared to 5.1 percent in 2009/10.

    The adverse effects of the revolution on the economyhave undermined growth performance for the rest of

    2010/2011. Disruption of economic activity, security

    failures, and lingering uncertainty are likely to have

    taken a severe toll on growth in the rst half of 2011,

    resulting in a signicant downward revision of growth

    projections in 2010/2011, compared to an earlier

    growth projection of 6 percent. Political uncertainty

    continued to take its toll on overall economic activity

    for the rest of 2010/2011 as the economic reform

    agenda and plans of foreign investment will mostlikely be delayed. However, if political stability is

    restored, growth could rebound in the next scal year,

    2011/2012.

    Other unfavorable effects of the political unrest were manifested in the decrease in domestic

    demand, which is the largest contributor to GDP. Specically, private consumption and investment

    were undermined due to the temporary disruption of economic activity and prevailing uncertainty.

    The latter effects may linger until political stability is restored.

    Ination has picked up following the revolution

    due to supply shortages, larger scal decits, the

    depreciation of the Egyptian pound relative to the

    US dollar and rising international food and energy

    prices. The average core ination index2 increased

    from 6.7 percent in 2009/10 to 8.6 percent in

    2010/11, driven by the rising prices of rice, poultry,

    edible oil and fats.

    The current account decit declined in 2009/10to 2 percent of GDP compared to the 2.4 percent

    decit in 2008/09. The merchandise trade decit

    continued its decline to 11.5 percent of GDP in

    2009/10, compared to 13.3 percent in 2008/09,

    driven mainly by the decrease in oil imports,

    which were more elastic, compared to oil exports

    with respect to the decline in oil prices.

    On a sectoral basis, Egypt saw only minor

    uctuations in the composition of import andexport contributions. Still, nominal values

    1 Fiscal year: 1 July 2010- 30 June 2011.2 Core ination excludes the prices of fruits, vegetables and regulated items.

    4.54

    5.10

    1.80*

    0

    1

    2

    3

    4

    5

    2008/09 2009/10 2010/11

    Real GDP Growth (y/y % change)

    * ECES projections.

    2009/10

    2010/1111.731

    6.714

    11.063

    8.652

    0

    5

    10

    15

    Headline CPI Core inflation

    Annual Average Inflation (y/y % change)

    -13.3

    -2.4

    -11.5

    -2

    -7.7

    -1

    -14

    -12

    -10

    -8

    -6

    -4

    -2

    0Trade balance/GDP Current account/GDP

    Trade and Current Account (% of GDP)

    2008/09

    2009/10

    July-Mar 2010/11

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    showed signicant uctuations.

    Total nominal export values

    dropped in 2010 (5.1 percent).

    The reduction in nominal export

    values was evident for fuel,

    minerals and oils (6.4 percent)

    and raw materials (38.3 percent).

    There was no increase in any

    component of exports in 2010.

    Total nominal import values also

    dropped in 2010 (2.7 percent).

    The most signicant reduction of

    imports was evident for fuel, minerals and oils (22.1 percent) and raw materials (14.2 percent).

    However, signicant increases in nominal import values were evident for consumer goods (27.6

    percent), both durable and non-durable.

    Data through March 2011 indicate an improvement in the trade decit, reecting a surge in exports

    (11.5 percent), notwithstanding a moderate increase in imports (5.1 percent) compared to trade datafor July-March 2010. On a geographical basis, the increase in total exports in July-March 2010/11

    was driven mainly by the increase in exports to the European Union, Asian countries and Africancountries.

    Egypts external sector is likely to have deteriorated in 2010/2011 and is projected to start improving

    again in 2011/2012. A signicant portion of foreign receipts was lost, mainly owing to the drop in

    FDI and a surge in capital outows, following the January 25th revolution. Further, the services

    balance received a huge blow as approximately one million tourists left the country and trafc

    through the Suez Canal slowed down during the early days of the unrest. Coupled with a reduction

    in remittances, in connection to the unrest in neighboring Arab countries, and the increase of interestpayments on public debt, the Egyptian pound weakened relative to the US dollar, reaching LE 5.944

    per US$ on July 31st, 2011.

    The conduct of macroeconomic policy in Egypt

    during 2009/2010 had been dictated by the need

    to mitigate the adverse impact of the global crisis

    on the domestic economy and sustain the growth

    recovery. Fiscal policy had been expansionary,

    increasing the overall decit to 8.1 percent of

    GDP in 2009/2010, more than one percentagepoint higher than the average in the previous

    three years. This had been justied as a counter-

    cyclical policy to stimulate the economy, and

    was driven by higher expenditures in the form

    of scal stimulus packages that the government

    implemented in the 2009/2010 budget.

    As a result of counter-cyclical expansionary scal policy, the primary decit, excluding interest

    payments, widened to 2.1 percent of GDP in 2009/2010, compared to 1.8 percent of GDP in

    2008/2009, reecting higher non-interest expenditures that surpassed the increase in revenues.

    Relative to GDP, government revenues decreased from 27.1 percent in 2008/2009 to 25.7 percent

    in 2009/2010, primarily reecting the decline in energy-related revenues. In contrast, government

    expenditures relative to GDP increased in 2009/2010 by approximately 1.4 percent, to 35.1 percent,

    2008/09

    2009/10

    July-Mar 2010/11

    0

    5

    1015

    20

    25

    30

    35

    40

    45

    EU USA Arab countries Asian countries African countries

    Exports By Region (Main Trading Partners) - % of Total Exports

    2008/09

    2009/10

    2010/11

    6.9

    1.8

    8.1

    2.1

    9.5*

    3.2*

    0

    1

    23

    4

    5

    6

    7

    8

    9

    10

    Overall deficit/GDP Primary/GDP

    Budget Deficit (% of GDP)

    * Estimate.

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    primarily reecting an increase in interest expenditures as well as higher wages and salaries andpurchases of goods and services.

    The wider scal decit exacerbated

    the public debt burden in 2009/2010.

    Compared to the previous year, domestic

    public debt registered an increase of

    19.6 percent in absolute gures and of1.7 percent relative to GDP. External

    debt also increased by 6.9 percent,

    in nominal values, at the end of June

    2010 to reach $33.7 billion.3 However,

    relative to GDP, gross external debt has

    been on a declining trend, reaching 15.9

    percent in 2009/2010, one percentage

    point lower than in the previous year.

    Concerns about inequality and

    rising pressures for the most

    vulnerable groups have forced

    an expansionary scal policy

    in 2010/2011 to ameliorate the

    economic implications of the

    political unrest in the wake

    of the January 25th revolution

    and subsequent uncertainty in

    Egypt.

    In response to protests, a 15

    percent increase in wages and

    pensions was introduced by the

    government, effective April 2011, for workers in the public sector. Moreover, a decision was taken

    to immediately appoint government employees in their jobs if they had been employed for 3 years

    or more. Subsidies surpassed what was originally budgeted on account of more coverage and

    higher international prices. In 2009/2010, the petroleum subsidy alone was estimated at LE 66.5

    billion, and represented 5.5 percent of GDP and 18.11 percent of total government expenditures. In

    2010/2011, petroleum subsidies were originally setat LE 66.7 billion and are expected to have reached

    LE 82.1 billion.

    Previous plans by the government to phase out

    subsidies will most likely be stalled, at least

    under the current interim government, and

    until presidential election is held, following

    parliamentary elections expected in September

    2011. In light of this commitment, and soaring

    3 External debt, in contrast to domestic debt, is mostly of long-term maturity that could last through 2030.

    27.1 25.7

    21.45*

    33.7 35.1

    31.16*

    0

    10

    20

    30

    40

    2008/09 2009/10 2010/11

    Fiscal Revenue and Expenditure - % of GDP

    Total revenue/GDP Total expenditure/GDP

    *Estimate.

    2009/10

    2010/11

    0

    3

    6

    9

    12

    Subsidies,grants

    andsocial

    benefits

    Wagesan

    d

    salaries

    Interest

    payments

    Purchaseof

    non-

    financialassets

    Othercurrent

    expenditure

    Purchase

    of

    goodsan

    d

    services

    Government Expenditures (% of Total Expenditure )

    0

    10

    20

    30

    40

    50

    60

    70

    80

    Tax revenue Other revenue Grants

    Government Revenues (% of Total Revenues)

    2009/10

    2010/11

    %

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    international oil prices (approximately $110 per barrel in July 2011)4 fuel subsidies are targeted at

    LE 95.5 billion in the 2011/2012 budget.

    Tax revenues, accounting for approximately two thirds of the total revenue, may be undermined by

    the slowdown of economic activity during the second half of 2010/2011 due to the political unrest

    and associated uncertainty. A signicant increase in spending on subsidies, wages and salaries and

    compensations for losses, coupled with a reduction in government revenues due to the slowdown,

    are projected to have increased the budget decit by nearly 25 percent, compared to what wasoriginally budgeted, estimated at 9.5 percent of GDP.

    The wider scal decit exacerbated the public debt burden in 2010/11. Compared to 2009/10,

    domestic public debt registered an increase of 19.12 percent in nominal value; however, relative to

    GDP, public debt had been on a declining trend, reaching 83 percent in 2010/11. External debt also

    increased, in nominal value, reecting a shift to issuing treasury bills denominated in US dollars, to

    diversify borrowing sources and prolong maturity. Consequently, the external debt reached $34.8

    billion in March 2011. While Egypts external debt position does not constitute an immediate threat

    to external stability, recent depreciation of the Egyptian pound could threaten external stability,

    absent recovery of foreign receipts.

    Net international reserves increased to a total

    of $35.1 billion in 2009/2010 (equivalent to

    7.5 months of imports) from $31.3 billion in

    2008/2009. This is despite a sharp reduction in

    FDI ows from $8.1 billion in 2008/2009 to $6.8

    billion in 2009/2010. However, deterioration in

    the balance of payments resulting from the January

    25th revolution has caused signicant losses of

    international reserves.

    Through 2009/2010, indicators in the stock market

    pointed to improving condence in the Egyptian

    market following the global recessionmost

    notably is the improvement in the EGX-30 index.

    In 2009/2010 the EGX-30 index gained 5 percent,

    relative to its value in the previous year. Still,

    market capitalization continued to decline, though

    not as drastically as what was exhibited during the

    global nancial crisis.

    Post January 25, 2011, the stock market went into

    a slump and trading was suspended following

    signicant losses that led to a complete shutdown

    on January 28th. The main indices of Egypts stock exchange, the EGX30 and EGX100, both

    dropped by 10.5 percent and 14 percent respectively in the last two sessions before the stock market

    was shut down. During the rst days of protests, several agencies downgraded Egypts debt rating:

    Moodys Investors Service cut Egypts government bond rating from Ba1 to Ba2; Standard and

    Poors cut the long-term foreign currency debt rating on Egypt to BB, two levels below investment

    grade and lowered long-term and short-term ratings of local currency bonds from BBB-/A- to

    BB+/B; Fitch revised the outlook for Egypt from Stable to Negative. On March 28th, thestock market resumed operations with moderate signs of recovery thus far.

    4 Source: Energy Information Administration.

    464

    410381

    0

    50

    100

    150

    200

    250

    300

    350

    400

    450

    500

    2008/09 2009/10 May-11

    Market Capitalization (LE billions)

    2009/10

    2010/11

    6.8

    35.2

    2.1

    27.2

    0

    5

    10

    15

    20

    25

    30

    35

    40

    Net FDI Net international reserves

    Net FDI and Net International Reserves ($ billions)

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    With the exception of the Suez Canal, all sectors experienced growth in 2008/2009 and 2009/2010,

    though some experienced reduced growth rates compared to the previous year. Sectors that are

    strongly tied to external transactions improved slightly in 2009/2010, compared to the previous

    year, although they had not fully recovered from the global crisis. The manufacturing sectorwhich

    is predominantly export-orientedgrew at a rate of 5.1 percent in 2009/2010. Tourism receipts

    also grew at 12 percent in 2009/2010, rebounding to its level before the crisis ($11.6 billion), after

    it had declined sharply in the previous year. On the other hand, Suez Canal receipts were still on

    a declining trend for the second year in a row, hitting a low of $4.5 billion, although are likely to

    continue to rebound with recovery in the global economy. Other areas that were vulnerable to global

    turbulences included labor remittances, which improved signicantly, with an impressive growth

    rate of 25 percent, reaching $9.8 billion in 2009/2010. FDI inows continued to decline reaching

    $6.8 billion, almost 50 percent lower than in 2007/2008 before the global crisis.

    Following the January 25th revolution, the Egyptian economy has suffered signicant losses that

    have affected several sectors, most notably tourism, manufacturing, retail and wholesale trade

    and construction. According to the Ministry of Tourism, there has been an estimated reduction

    of 3 million tourists in the period from February to April, with losses expected as high as $2.3

    billion. Further, during the 18 days of the January 25th revolution, extracting and manufacturinglosses exceeded LE 1.2 billion while construction and building losses totaled over LE 760 million.

    Looking ahead, Egypts economic outlook in 2010/2011 and 2011/2012 will depend on the speed of

    the reform agenda towards achieving economic, political and social stability.

    0

    0.02

    0.04

    0.06

    0.08

    0.1

    0.12

    0.14

    0.16

    0.18

    Agriculture,forestry&

    fishing

    Extractions

    Manufacturing

    Electricity

    Water&sa

    nitation

    Cons

    truction

    Transportation&

    storage

    Communica

    tions&

    info

    rmation

    Sue

    zCanal

    Trade

    Finance

    Insurance&social

    in

    surance

    Tourism

    Realestateservices

    Publicgovernment

    Ed

    ucation

    Health

    Others

    ervices

    2009/10

    July-March 2010/2011

    Sectoral Shares (% of GDP)

    2008/09

    2009/10

    -10

    -5

    0

    5

    10

    15

    20

    Agriculture,

    forestry

    andfishing

    Extractions

    Manufacturing

    Electricity

    Water

    Sanitation

    Construction

    Transportation

    &storage

    Communications

    SuezCanal

    Wholesaleand

    retailtrade

    Financial

    intermediaries

    Insurance

    Tourism

    Realestate

    Education

    Health

    Otherservices

    Sectoral Growth Rates

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    AreAAnd POPulAtiOn

    Indicator Unit 2008 2009 2010 % Change

    Total area Km2 1,009,450 -

    Inhabited area Km2 55,520 -

    Population inside the country1 Million 74.4 76.1 77.7 2.10

    Growth in population Percent 2.1* 2.2 2.1

    Density in total area Inhabitants/Km2 73.7 75.4 77.0 2.1

    Density in inhabited area Inhabitants/Km2 1,340 1,371 1,399 2.0

    Population abroad1 Million 3.9 5.3 6.7 26.4

    Source: Obtained from www.capmas.gov.eg.

    *Revised. 1Average of two calendar years, CBEMonthly Statistical Bulletin.

    MAcrOecOnOMic indicAtOrs

    Indicator Unit 2007/2008 2008/2009 2009/2010 2010/2011 (a)%

    Change

    Real GDP (GDP at factor cost at 2006/2007

    prices)Million LE 761,398 796,836.1 837,770.3 852,850.2 1.8

    Real GDP/per capita (at 2006/2007 prices)Percent

    10,234 10,471 10,782.1 10,761 -0.2

    Real GDP growth rate 7.2 4.7 5.2 1.8 -

    GDP in US dollars (current market prices)Million $

    162,688 189,094 218,907 235,982 7.8

    Trade balance (23,415) (25,173) (25,120) (18,415)^ (0.2)

    Trade balance/GDP Percent (14.4) (13.3) (11.5) (7.7)^ -

    Current account balance Million $ 888 (4,424) (4,318) (2,400)^ (2.4)

    Current account balance/GDP Percent 0.5 (2.3) (2.0) (1.0)^ -

    Net international reserves Million $ 34,572 31,310 35,221 27,100 -23

    Net international reserves/GDP

    Percent

    21.3 3.9 4.2 3.2 -

    Private nal consumption/GDP (current prices) 72.4 76.1 74.7 76.3 -

    Annual real growth rate of private consumption 5.7 5.7 5.1 4.1 -

    Domestic savings rate 16.8 12.6 14.1 10.8 -

    Investment rate 22.4 19.2 18.9 15.4 -

    Distribution of investment by ownership

    Public sectorPercent

    35.3 51.6 45.3 - -

    Private sector 64.7 48.4 54.7 - -

    Ination rate

    Consumer price index (CPI)*Percent

    20.2 9.9 10.7 11.8 -

    Producer price index (PPI)* 32.9 -12.0 8.6 - -

    Exchange rate (average of two calendar years) LE/$ 5.541 5.490 5.582 5.8 ** -

    Overall budget decit Million LE 61,122 71,826.0 98,038 130,360 36.5

    Overall budget decit/GDP Percent 6.8 6.9 8.1 9.5 -

    (a): Estimated for the full scal year 2010/2011.

    ^ July- March 2010/11

    * End of year.

    ** Average of monthly exchange rates from July 2010 to June 2011.

    Sources: www.capmas.gov.eg; Ministry of Finance, 2010, the Financial Monthly, April; Ministry of State for Economic Development,

    Economic and Social Development Plan, several years; and Central Bank of Egypt, 2010,Monthly Statistical Bulletin, March.

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    FOreign direct investMent

    Indicator Unit 2008/2009 2009/2010 % change

    Foreign direct investment (FDI) inows

    FDI outows

    Net FDI

    Distribution of FDI by activity

    Non-oil net FDI

    Greenfeld investmentsPrivatizations

    Real estate

    Oil and gas net FDI

    FDI inows by region

    USA

    EU

    Arab countries

    Other

    Million$

    12,835.1

    4,722.7

    8,113.4

    2,750.9

    2,312.3300.2

    138.4

    5,397.0

    3,515.0

    5,578.4

    2,029.7

    1,713.0

    11,008.1

    4,249.9

    6,758.2

    3,170.9

    2,689.8175.7

    305.5

    3,588.6

    1,424.9

    6,763.2

    1,439.5

    1,380.5

    -14.23

    10.01

    -16.70

    15.27

    16.32-41.47

    120.72

    -33.51

    -59.46

    21.24

    -29.08

    -19.41

    Sources: Central Bank of Egypt, 2010, Monthly Statistical Bulletin, March; Ministry of Investment, 2009, Annual Report.

    Geographic Distribution of Net FDI by Source in 2009/10

    Source: Central Bank of Egypt, 2009,Monthly Statistical Bulletin, June.

    FiscAl indicAtOrs

    Indicator Unit 2009/2010 2010/2011* % change

    Total revenues

    Tax revenues

    Grants

    Other revenues

    Property income

    Sales of goods and services

    OtherTotal expenditures

    Wages and salaries

    Purchases of goods and services

    Interest payments

    Subsidies, grants and social benets

    Other expenditures

    Purchases of non-nancial assets

    Primary decit1

    Net acquisition of nancial assets

    Overall budget decit

    MillionLE

    268,114

    170,494

    4,333

    93,288

    54,571

    17,212

    21,505365,987

    85,369

    28,059

    72333

    102,974

    28,901

    48,350

    25,705

    166

    98,038

    279,749

    199,770

    4,913

    89,770

    -

    -

    -424,064

    109,605

    28,823

    86,662

    139,503

    36,522

    40,511

    43,698

    -3,065

    130,360

    4.3

    17.2

    13.4

    -3.8

    -

    -

    -15.9

    28.4

    2.7

    19.8

    35.5

    26.4

    -16.2

    70.0

    -1,946.4

    33.0

    Primary decit/GDP

    Overall budget decit/GDP

    Total domestic public debt/GDP

    Total foreign debt/GDP Pe

    rcent 2.1

    8.1

    6712.4

    3.2

    9.5

    70.610.5

    52.4

    17.3

    5.4-15.3

    Sources: Ministry of Finance, 2010, the Financial Monthly, April; and Central Bank of Egypt, 2010,Monthly Statistical Bulletin,

    March.1 Primary decit = Overall decit - Interest payments.

    * Preliminary estimates.

    Other

    13% USA

    13%

    EU

    61%

    Arab

    countries

    13%

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    MOneyAnd BAnking sectOr

    Indicator Unit 2009 2010 % change

    Total deposits*

    MillionLE

    717,840 787,433 10

    Lending and discount balances excluding government* 399,209 426,605 7

    Domestic liquidity (M2)** 831,211 917,467 10

    Money supply** 182,991 214,037 17

    Net foreign assets* 254,134 282,408 11

    Net domestic assets** 577,077 637,353 10

    Total domestic credit* 695,326 775,268 11

    Dollarization rate in total deposits**

    Percent

    20.1 17.2 -14

    Annual average deposit interest rate (three-month deposits

    in LE) (1)** 7.03 5.97 -15

    Annual average interest rate on loans (one year or less inLE) (2)**

    12.39 11.35 -8

    Interest rate spread (2-1)** 5.36 5.38 0

    * Source: Central Bank of Egypt,Monthly Bulletin.** Source: Ministry of Finance, Financial Monthly.

    stOck MArket

    Indicator Unit 2008/2009 2009/2010 % change

    EGX-30 index (previously CASE-30) Points 5,703 6,033.1 6

    Accumulated number of privatized companies 282 282 0

    Privatization proceeds (accumulated) Million LE 53,644 53,644 0

    Number of listed companies in the primary market 333 215 -35

    Price/earnings ratio for the most active 50 listedcompanies

    Percent 11.5 12.64 10

    Number of listed shares in the primary market 22,430 29,002 29

    Number of transactions in the secondary market Million 14.6 - -

    Total value of traded securities during the month Million LE 61,160 42,249 -31

    Market capitalization of listed companies* Million LE 463,644 410,144 -12

    Turnover ** Percent 60.1 43 -28

    Source: Central Bank of Egypt,Monthly Statistical Bulletin.

    * End of period.

    ** Calendar year (IMF indicators).

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    sectOrAl shAresin gdP And investMents

    Sector Unit 2007/2008 2008/2009 % Change

    Shares (%) in

    Percent

    GDP Total

    investments

    GDP Total

    investments

    GDP Total

    investments

    Agriculture 13.7 3.4 14 2.9 2 -15

    Mining 14.9 19.3 14.4 26.4 -3 37

    Manufacturing 16.6 15 16.9 11 2 -27

    Electricity 1.3 7.8 1.3 6.8 0 -13

    Water 0.3 4.5 0.3 3.6 0 -20

    Construction 4.4 1.9 4.6 1.8 5 -5

    Transportation and storage 4.1 10.8 4.1 11.7 0 8

    Communications 3.1 7.1 3.2 8.4 3 18

    Suez Canal 2.7 0.2 2.2 0.2 -19 0

    Trade 11.5 2.3 11.6 2.5 1 9

    Financial intermediaries 3.6 0.2 3.6 0.4 0 100

    Insurance and social insurance 3.6 0 3.3 0 -8 0

    Tourism 3.5 2.6 3.5 1.9 0 -27

    Real estate services 2.7 6.9 2.6 7.5 -4 9

    Education 4.3 3.6 1.1 2.7 -74 -25

    Health 1.1 2.5 1.3 2.2 18 -12

    Other services 1.3 9.4 1.6 9.9 23 5

    General government 1.8 0 10 0 456 0

    Source: Obtained from the Ministry of Economic Developments website www.mop.gov.eg.

    eMPlOyMent

    Indicator Unit 2009 2010 % Change

    Labor force

    Million 25.4 26.24 3.3

    Employed 23 23.8 3.5

    Unemployed 2.38 2.35 -1.3

    Unemployment rate Percentage of labor force 9.4 9 -4.3

    Percentage of males in labor force 76.6 76.9 0.4

    Percentage of females in labor force 23.4 23.1 -1.3

    Crude participation rate* Percentage of labor force aged15-64 to total population

    33.1 33.29 1

    Male* 50 50.2 0.4

    Female* 15.9 15.7 -1

    Rened participation rate** Percentage of labor force aged15-64 to same age population

    51.1 51.6 1

    Male** 77.7 78 0.39

    Female** 24.3 24.29 -0.04

    Source: Central Bank of Egypt; http://www.eip.gov.eg; http://www.capmas.gov.eg.

    * Estimates for 2010 (labor force aged 15-64 and the same age population) are based on the natural increase in population using 2008

    as a base year.

    ** Total population inside the country only.

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    FOreign trAde*

    Indicator 2009Million $

    Share(%)

    2010Million $

    Share(%)

    Change(%)

    Exports of goods 23,102 100 26,667 100 15

    Crude oil and products 6,935 30 7,591 28 9

    Agricultural products excl. cotton 2,819 12 2,899 11 3

    Food industries 758 3 1,279 5 69

    Metals and products 2,117 9 2,655 10 25

    Chemicals and medicine 2,550 11 3,087 12 21

    Leather and products 108 0 178 1 65

    Furniture and products 284 1 245 1 -14

    Cotton, textile and clothes 2,210 10 2,949 11 33

    Electronic and engineering products 1,090 5 1,213 5 11

    Books and paper 331 1 429 2 30

    Other 3,900 17 4,143 16 6

    Imports of goods 44,946 100 52,948 100 18

    Crude oil and products 4,476 10 7,120 13 59

    Agricultural products excl. cotton 4,234 9 5,328 10 26

    Food industries 1,266 3 1,808 3 43

    Metals and products 7,323 16 7,121 13 -3

    Chemicals and medicine 3,792 8 4,393 8 16

    Leather and products 38 0 76 0 100Furniture and products 203 0 257 0 27

    Cotton, textile and clothes 2,449 5 2,905 5 19

    Electronic and engineering products 12,671 28 13,567 26 7

    Books and paper 1,028 2 1,280 2 25

    Other 7,465 17 9,095 17 22

    Source: Obtained from www.capmas.gov.eg.

    *Classication revised from the previous edition (2010).

    Source: Central Bank of Egypt, 2010,Monthly Statistical Bulletin, March.

    EU

    36%

    Arab countries

    20%

    USA

    18%

    Asian countries

    14%

    Other

    10%

    African

    countries

    2%

    Geographic Distribution of Exports in

    2009/10

    EU

    37%

    Asian countries

    21%

    Other

    19%

    Arab countries

    11%

    USA

    11%

    African

    countries

    1%

    Geographic Distribution of Imports in

    2009/10

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    PricesAnd wAges

    Indicator Unit 2008/2009 2009/2010 % Change*

    Consumer price index1

    Industrial price index1

    Producer price index2

    Mean earnings per worker/month

    Percentage

    point

    128.4 142.139 10.7

    164.8 187.6 13.8

    148.2 160.9 8.6

    Public sector LE 1,820 N/A

    Private sector LE 1,184 N/A

    Source: Obtained from www.capmas.gov.eg.1Jan 2007=100. 2Base year 2004/05.

    *End of year.

    Business sectOr enterPrisesIndicator Unit 2008/09 2009/10 % Change

    Number of newly established enterprises 6,291 6,269 -0.35

    Issued capital of newly established enterprises Million LE 15,257 17,552 15.04

    Average issued capital Million LE 2.4 2.8 16.67

    Number of expanded enterprises 1,566 1,139 -27.27

    Issued capital of expanded enterprises* Million LE 58,707 66,743 13.69

    Source: Ministry of Investment,Progress Report2008/2009.

    *Revised.

    Source: Obtained from www.mof.gov.eg.

    Tourism

    8%

    Construction

    14%

    Agriculture

    8%

    Industry

    19%

    Telecommunications

    8%

    Financial

    services

    0.1%

    Services

    43%

    Sectoral Distribution of Newly

    Established Enterprises in 2009/10

    Tourism

    20%

    Construction

    27%

    Agriculture

    7%

    Industry21%

    Telecommunications

    2%

    Financial services

    1%

    Services

    22%

    Sectoral Distribution of Issued Capital of Newly

    Established Enterprises in 2009/10

    Sectoral Distribution of Employment 2007/08 (%) Infation (%)

    0

    5

    10

    15

    20

    25

    30

    Agriculture,

    irrigation&fishing

    Governmentservices

    Manufacturing

    industries

    Internaltrade

    Constructionand

    building

    Education,

    health

    andotherservices

    Transportationand

    communications

    Realestateactivities

    Restaurantsand

    hotels

    mining

    Electricity

    Water

    Financial

    intermediaries

    SuezCanal

    Insuranceandsocial

    security

    %

    Source: Ministry of Economic Development,Monthly Statistical

    Bulletin, June, time series of basic data: Output, investment,

    employment and wages.

    33.8

    22.6

    -13.4

    8.6

    12.2

    20.5

    10.1

    -17

    -13

    -9

    -5

    -1

    3

    7

    11

    15

    19

    23

    27

    31

    35

    %

    Jan-08

    Mar-08

    May-08Jul-0

    8

    Sep-0

    8

    Nov-0

    8Jan

    -09

    Mar-09

    May-09Jul-0

    9

    Sep-0

    9

    Nov-0

    9Jan

    -10

    Mar-10

    May-10Jul-1

    0

    Sep-1

    0

    Nov-1

    0Jan

    -11

    Mar-11

    May-11

    CPI inflation PPI inflation

    Source: Ministry of Investment,Annual Report2008/09.

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    MAjOr sectOrs: PerFOrMAnce indicAtOrs

    MAnuFActuring

    Indicator Unit 2008 2009* 2010 % Change

    Manufacturing production index1

    Percentagepoint

    128.9 140.0 147.3 5.2

    Rubber and plastic products 105.6 117.80 115.10 2.3-

    Publishing and printing 197.5 144.30 150.50 4.3Furniture 105.4 88.04 101.70 15.5

    Wearing apparel 107.3 238.80 223.00 6.6-

    Communications equipment 115.2 45.04 93.14 106.8

    Paper and products 140.5 139.20 155.50 11.7

    Other non-metallic minerals (e.g., cement,ceramics, glass and lime)

    271 293.10 261.00 11.0-

    Basic metals 100.6 112.40 87.92 21.8-

    Chemicals 125.4 143.50 154.10 7.4

    Electrical machinery 190.3 214.60 181.70 15.3-

    Fabricated metal products 86.8 199.50 171.20 14.2-

    Machinery and equipment 195.5 203.30 214.20 5.4

    Medical equipment 122.3 111.20 158.90 42.9

    Tobacco 81.1 108.80 100.70 7.4-

    Food products and beverages 80.8 99.72 112.70 13.0

    Textiles 77 82.78 129.60 56.6

    Motor vehicles, trailers and semi-trailers 99.6 90.71 103.80 14.4

    Source: CAPMAS,Monthly Production Index, calendar year average.1 Base year/Month= 2002/ December; numbers are for December 2008, 2009 and 2010.

    *Revised.

    trAnsPOrt

    Indicator Unit 2008 2009 2010 % Change

    Road transport

    Number of cars Thousand 4,657 5,138 5,815 13.18

    Number of lorries Thousand 768 832 866 4.09

    Rail transport

    Passengers Million 359 227 240 5.97

    Goods Thousand tons 5,085 5,622 6,627 17.88

    Air transport (incoming and outgoing)

    Passengers Thousand 35,864 34,937 40,227 15.14

    Goods Tons 278,578 285,839 310,903 8.77

    Sea transport (incoming and outgoing)

    Number of ships 20,301* 20,278 20,343 0.32

    Containers Thousand TEU 6,082 6,177 6,700 8.47

    Goods Million tons 116.2 123.3 135.4 9.81

    Passengers Thousand 3,008 2,842 2,939 3.41

    Loading of passing ships in Suez Canal Million tons 734 846 15.26

    Sources: Obtained from www.idsc.gov.eg and www.capmas.gov.eg; CAPMAS, 2009,Annual Statistical Yearbook; and www.ehcaan.com.

    *Revised.

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    14

    tOurisM

    Indicator Unit 2008/2009 2009/2010 % Change

    Tourist arrivals Thousand persons 12,293 13,758 11.92

    Number of tourist nights Thousand nights 123,383 136,370 10.53

    Tourism revenues Billion $ 10.49 11.59 10.49

    Average stay per tourist Nights 10 9.9 -1.00

    Number of hotel establishments 1,429 1,446 1.19

    Total number of rooms 142,811 143,932 0.78

    Average expenditure of a tourist Dollars per night 85 85 0.00

    Sources: CAPMAS, Central Bank of Egypt, 2010,Monthly Statistical Bulletin, March; and Ministry of Finance, 2010, the Financial

    Monthly, April.

    cOMMunicAtiOnsAnd telecOMMunicAtiOns

    Indicator Units 2009 2010 % Change

    Penetration ratio of:

    Fixed lines

    Per1000people

    134 122 -8.96

    Mobile phones 721 904 25.38

    Post ofces 0.049 0.048 -0.96

    IT clubs 0.026 0.027 3.85

    IT and telecommunications companies 0.046 0.049 6.52

    Internet users 217 295 35.94

    Savings in post ofce funds Billion LE 73.6 -

    Source: Ministry of Communications and Information Technology, 2010,ICT Indicators Quarterly Bulletin, Q1.

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    egyPtAndOther

    eMergingecOnOMies

    Indicator

    Unit

    Egypt

    Tunisia

    Morocco

    Jordan

    Philippines

    Indonesia

    Malaysia

    South

    Africa

    Brazil

    India

    Turkey

    GDP*

    Billion$(currentprices)

    218.91

    44.29

    91.19

    27.57

    199.58

    706.55

    237.8

    363.7

    2087.

    88

    1729.01

    735.26

    GDPpercapita*

    $(cur

    rentprices)

    2,591.46

    4,204.10

    2,770.96

    4,525.44

    2,131.98

    3,038.74

    8,519.16

    7,279.57

    1,0710

    .06

    1,476.6

    9,712.2

    Unemployme

    nt,total

    P

    ercent

    9.39

    14.2

    **

    10.01

    12.87

    7.47

    7.87

    3.69

    23.80

    8.28

    -

    14.03

    Laborparticip

    ationrate,

    total

    Percen

    tageoftotal

    populationaged15-64

    48.80

    48.00

    52.30

    49.30

    63.80

    68.90

    62.00

    55.00

    70.7

    0

    57.60

    46.80

    Computer,communicationsand

    otherservices

    Percentageofcommercial

    serviceexports

    16.79

    18.46

    24.84

    11.70

    64.68

    32.35

    28.03

    14.71

    56.9

    9

    70.03

    8.55

    Externalbalanceongoodsand

    services

    PercentageofGDP

    -6.83

    -3.35

    -10.91

    -21.46

    0.87

    2.80

    21.54

    -0.86

    -0.06

    -4.44

    -1.18

    Trade

    56.91

    107.33

    68.08

    108.46

    62.46

    45.45

    171.29

    55.44

    22.3

    0

    43.61

    47.66

    Grossxedcapitalformation

    18.98

    25.86

    30.71

    14.78

    14.72

    31.06

    20.13

    22.57

    16.9

    5

    30.82

    16.87

    High-techexp

    orts

    Percentage

    ofmanufactured

    e

    xports

    0.99*

    6.0

    9

    7.10

    1.35

    65.55

    12.66

    47.11

    5.57

    13.9

    0

    8.60

    1.87

    Source:WorldBank(2009).Datafor2009exceptasnoted.

    *Datafor2010.

    **Datafor2008.

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    Source: Obtained from www.investment.gov.eg.

    MAin POrtsAnd PuBlic Free ZOnesin egyPt

    The Egyptian Center for Economic Studies

    Nile City Towers North Tower

    8th Floor Corniche El Nil,

    Cairo 11221 EgyptTel.: (202) 2461 9037 44

    Fax: (202) 2461 9045

    Email: [email protected]

    Website: www.eces.org.eg